The Taiwan Greater China Fund's March 2008 Monthly Update

Market Environment -- March 2008

NEW YORK, NY -- (MARKET WIRE) -- 04/07/08 -- The Taiwan Greater China Fund's (NYSE: TFC) net asset value (NAV) in March underperformed both its primary benchmark, the Taiwan China Strategy Index (TCS Index) as computed by MSCI and the total return in US$ terms of the Taiwan Stock Exchange Index (TAIEX). The Fund's share price during the month, however, outperformed the TCS Index but underperformed the TAIEX in US$ terms. The Fund's NAV increased 0.5% while its share price increased by 2.1%, compared to a 0.8% increase in the TCS Index and a 3.7% increase in US$ terms of the TAIEX. The Fund's discount to net asset value averaged 11.2% during March, with a high of 13.6% and a low of 7.7%, and a closing value of 11.3%. During the month, the Taiwan dollar appreciated 1.8% against the U.S. dollar.

On the first trading day after the KMT's landslide win over the DPP in Taiwan's presidential elections, the TWSE index shot up on opening to 9,049, its highest level since early November. The index, however, traded down from its peak the rest of the day but still closed at its March high of 8,885. The market reflected the widespread belief that the Ma Ying-jeou's 58% to 42% win over Frank Hsieh will foster economic growth through two-way investment, direct links and an overall improvement in cross-strait relations. As could be expected, performance in the construction, transport and tourism sectors led the market in March, gaining 17.8%, 10.9% and 10.9% respectively in US$ terms. The larger financial sector (16.1% of the index) was up 6.4% on news that Taiwan would open up indirect investment in China for banks. The tech sector (46.8% of the index) lagged overall, gaining only 0.81%, on nervousness about the impact of NT$ appreciation and the likelihood that the US has entered a recession. As expected, the Central Bank increased its benchmark rank for the 15th straight quarter to 3.5% in an effort to quell the impacts of inflation. This boosts the differential between the NT$ and the US$ to the highest level in 14 years. The Central Bank at the same time is trying to mitigate the impact on the export sector of the economy by moderate intervention in the FX market to slow appreciation.

1 3 6 1 3 Since Total Return Month Month Months Year Years 2/27/2004 ------------ ----- ----- ------ ---- ----- --------- Fund (NAV) ** 0.5% -3.0% -12.7% 12.9% 48.8% 41.0% Fund (US$ Share Price) 2.1 -4.6 -11.2 9.5 40.8 41.2 Taiwan China Strategy Index 0.8 -2.0 -10.9 15.5 54.0 44.8 TAIEX (US$) 3.7 7.6 -2.7 22.4 65.0 58.5 NT$/US$ 1.8 6.7 7.5 8.8 8.7 9.8

* Past results are not necessarily indicative of future performance of the Fund. Rates of return and principal value will fluctuate and you may have a gain or a loss when you sell shares. Performance figures reflect reinvested dividends and capital gains. Dividends and capital gains reinvested are on a net basis, after the deduction of applicable taxes. The returns shown above for the TCS Index are also calculated on a net basis but the TAIEX is measured on a gross return basis, with the full reinvestment of all dividends received. February 27, 2004 is a significant date for measurement as it is when the Fund fully implemented its China-focused investment strategy. Returns for the Fund, TCS Index and TAIEX are in US Dollars. Source: Bloomberg except MSCI for TCS Index. For more information and important disclosures on the TCS Index please see the Fund's website at http://www.taiwangreaterchinafund.com/. Returns, except 12-month period, are not annualized.

** Total returns reflect changes in NAV per share during each period and assume that dividends and capital gains distributions, if any, were reinvested. These percentages are not an indication of the performance of a shareholder's investment in the Fund based on market price.

Portfolio Management

The Fund holds about 100% of its assets in equities. Such holdings are well diversified among top quality stocks, with investment decisions based on a fundamental approach to securities and economic analysis. Portfolio holdings and sector composition are subject to change.

Top Ten Holdings as of Industry Diversification March 31, 2008 as of March 31, 2008 % of Net % of Net Company Assets Ten Largest Sectors Assets ------- -------- ------------------- --------Hon Hai Precision Ind. Co. 10.0% Computer Systems & Hardware 18.3% Nan Ya Plastic Corp. 7.4 Semiconductors 16.6 China Steel Corp. 6.2 Plastics & Petrochemicals 13.0 AU Optronics Corp 6.0 Flat Panel Displays 9.6 Taiwan Semiconductor Mfg. Co. 5.5 Electronic Components 9.0 Mediatek, Inc. 5.2 Steel 6.4 Asustek Computer 4.9 Food 5.1 Formosa Plastics Corp 3.5 Computer Peripherals/ODM 5.0 Taiwan Cement 3.0 Cement 4.9 Uni-President Enterprises 3.0 Textile 1.6

Per Share Standing at March 31, 2008: NAV NYSE ----- -----$7.78 $6.90

The opinions and forecasts expressed are those of the portfolio manager and may not actually come to pass. The information presented is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of a particular security. Fund shares are not FDIC insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.

The Taiwan Greater China Fund

Portfolio Management: Steven R. Champion President Nanking Road Capital Management LLC 111 Gillett Street Hartford, CT 06106 Tel: 1-860-278-7888

Shareholder Services: Patricia Baronowski The Altman Group New York, NY 10165 Tel: 1-212-681-9600

2008-04-07 18:42:29 0330109 MARKETWIRE